TORONTO – Roots Corp. reported its loss widened in the second quarter as it set the date for a shareholder meeting to vote on its deal to be acquired by Marquee Brands.
The retailer says it will hold a virtual shareholder meeting on Oct. 13 to vote on the friendly offer by the New York brand management firm to take the company private at a price of $4.10 per share.
The company expects the transaction to close in the fourth quarter of the fiscal year, subject to shareholder support as well as court and regulatory approvals.
“Subsequent to the quarter, Roots agreed to be acquired in a transaction that strongly endorses the Roots brand. Over the past several years, we have restored Roots to a position of strength, with a distinctive Canadian identity that resonates with customers here and around the world,” Roots CEO Meghan Roach said in a news release on Friday.
Roots agreed to the go-private transaction in August. If the proposed deal goes through, Marquee Brands, the firm behind Martha Stewart, Laura Ashley and Roberto Cavalli, says growth will be a top priority.
Chief executive Heath Golden said in August that he envisions Marquee Brands bringing Roots to big markets like Korea, India and Mexico and expanding the small presence it already has in the U.S. and China.
The deal came after Roots announced a strategic review in March, where the board said it would study a range of possibilities, including a possible sale. The process was meant to find ways to maximize value for shareholders.
Roots reported a loss of $6 million in its second quarter, compared with $4.4 million a year earlier.
On a per-share basis, the loss amounted to 15 cents, compared with 11 cents per share a year earlier.
Roots said it incurred $1 million in consulting and legal costs in the second quarter related to its deal. It also recorded $2 million in costs related to the transition of a supply distribution centre in July.
On an adjusted basis, Roots said it lost eight cents per share in the quarter compared with an adjusted loss of nine cents per share in the same quarter last year.
Total sales for the quarter amounted to $49.5 million, down from $50.8 million a year ago.
Direct-to-consumer sales totalled $40.5 million, down from $41 million in the same quarter last year, while partner and other sales amounted to $9 million, down from $9.7 million.
The company said the decrease in direct-to-consumers sales was mostly attributed to the temporary closure of its flagship store in Whistler, B.C. The store had been closed due to a relocation that is now complete.
This report by The Canadian Press was first published Sept. 11, 2026.
Companies in this story: (TSX: ROOT)
